z
A Partner Connect Webinar
Manufacturing Digital Maturity for Small BusinessPaul Whiteman / Annette Grotz
May 27, 2020
A Partner Connect Webinar
Speakers
Paul WhitemanPartner & Costpoint Materials Consultant
Annette GrotzManager, Product Strategy and Management
Lexell Blue Services
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Costpoint/TESS Implementations and Re-Implementations
Costpoint Materials/Manufacturing
Data Migration, Restructures, M&A Integration and Divestitures
Cognos Report development
Product Installations, Upgrades & O&M
Costpoint Health Check/Product Usage Assessments
Project Management
Agenda Introduction
Why increase Manufacturing digital maturity?
Benefits of increasing digital maturity
How to adopt new Manufacturing capability
Summary
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Why increase Manufacturing digital maturity?
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Manufacturing is complex
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Project Manufacturing Life Cycle Business Processes
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Manufacturing Maturity
9Manufacturing Solution Capability
Man
ufac
turin
g M
atur
ity
Procurement
Product Definition
InventoryManagement
Bills of Materials
Production WIP Control
Sales Orders
Routings
BarcodingECN
MRP
MPS
APSCapacity Planning
MES
Shop Floor Labor
QMS
Integration & Automation
PLM
Why increase Manufacturing Maturity?
Product lifecycle stages
R&D Research & Development
LRIP Low Rate Initial Production
FRP Full Rate Production
Rapid growth in GovCon space from contract awards and/or acquisition
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Why increase Manufacturing Maturity?
Product Quality / Compliance requirements
Increased competition in GovCon marketplace drives cost reduction efforts
Minimize loss of ‘tribal knowledge’ from staff / resource turnover
Management / Leadership
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Benefits of increasing digital maturity
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Benefits: Increasing workforce efficiency Doing more with less (some examples)
Importing data from files (Parts, BOM’s)
Streamline Inventory Picking for assemblies
Generating supply orders from BOMs, Sales Orders, Reorder Points
Eliminating duplicate entry of data to outside tools (Excel)
Barcode scan data entry (Warehouse, Production, Time Entry)
Reducing time needed to create Management Reports
Workflows streamlining processes (Approvals, Releasing Orders etc)
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Benefits: Minimize materials risks and costs
Production and MRP modules minimize risks of materials shortages
Reduce inventory holding costs
Improve customer on-time deliveries
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Benefits: Improved data accuracy Eliminating duplicate data entry improves data accuracy System controls and workflows improve data accuracy Purchase Requisition approvals Receiving Inspection BOM controls / Engineering Change Notices Inventory counting
Capturing actual production costs (Materials, Labor, OSP, Indirect Costs) – use for future estimating
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Benefits: Compliance
MMAS – Materials Management Accounting System
CPSR – Contractor Purchasing System Review
Government Property
Quality / Product Traceability
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Implementing new manufacturing capability
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Should we use a separate MRP?
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Materials Requirements
Planning (MRP)
Project Financials (ERP)
» Your Supply Chain and MRP needs to be tightly connected to your financial/billing system – compliance risks
» MRP systems integrated to Financial Systems is not typical or recommended
» Difficulties tracing costs from source through to financial reporting and billing
» Choose a system that will provide project financial compliance and project based MRP
PO’sReceiptsJournal Entries
ERP / MRP - Project Financials- Procurement- Inventory- Production Control- MRP
ProjectsSuppliers
Parts
Key concepts for implementation
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Increasing Digital maturity: The more skills the workforce needs to support (Training) The more accurate the data needs to be The more defined and documented Business Processes needed Needs to be instep with increasing Organizational maturity
Be realistic on how much new capability your organization can absorb Materials / Manufacturing is modular so it is typical to implement new
modules/capability in logical stepping stones
Implementation stepping stones
20Manufacturing Solution Capability
Man
ufac
turin
g M
atur
ity
Procurement
Product Definition
• Streamlining Procure to Pay• PR Approvals• Part purchase history• RFQ’s / Quote creation• Vendor Performance • Part quality requirements• PO commitments reporting
Implementation stepping stones
21Manufacturing Solution Capability
Man
ufac
turin
g M
atur
ity
Procurement
Product Definition
InventoryManagement
• Project based inventory tracking/reporting• ABC Cycle Counting• Part Serial/Lot/UID traceability• Shelf Life management• Inventory costing and GL impacts
Implementation stepping stones
22Manufacturing Solution Capability
Man
ufac
turin
g M
atur
ity
Procurement
Product Definition
InventoryManagement
Bills of Materials
Production WIP Control
• EBOM and MBOM maintenance• Importing BOMs• Creation of supply orders• Manufacturing Order scheduling• Materials shortage reporting and picking• Assembly cost rollup (Mat, Lab, OSP)
Implementation stepping stones
23Manufacturing Solution Capability
Man
ufac
turin
g M
atur
ity
Procurement
Product Definition
InventoryManagement
Bills of Materials
Production WIP Control
Sales Orders
• Routing operation definition and completions• Standard v Actuals run times reporting• Customer deliverable/demand management• Shipping / DD250 documentation• Invoicing for Fixed Price / Units Delivered Routings
Implementation stepping stones
24Manufacturing Solution Capability
Man
ufac
turin
g M
atur
ity
Procurement
Product Definition
InventoryManagement
Bills of Materials
Production WIP Control
• Engineering Change control of Parts/BOM/Routings• Project based MRP planning• Auto-generation of supply orders • MRP exceptions – Cancel, Decrease, Reschedule• Substitute Part Planning
ECN
MRP
Sales Orders
Routings
Implementation stepping stones
25Manufacturing Solution Capability
Man
ufac
turin
g M
atur
ity
Procurement
Product Definition
InventoryManagement
Bills of Materials
Production WIP Control
• Shop floor labor time and attendance• Implementing best-in-breed Manufacturing systems
• PLM, MES, QMS, APS• Automating data capture via barcode scanning
ECN
MRP
Sales Orders
Routings
Barcoding
APSCapacity Planning
MES
Shop Floor Labor
QMS
PLM
Implementation stepping stones
26Manufacturing Solution Capability
Man
ufac
turin
g M
atur
ity
Procurement
Product Definition
InventoryManagement
Bills of Materials
Production WIP Control
• Integrating best of breed Manufacturing systems• Web Service or Imports• Real-Time or scheduled batches
• Developing automations/extensions and workflow
ECN
MRP
Sales Orders
Routings
Barcoding
APSCapacity Planning
MES
Shop Floor Labor
QMS
Integration & Automation
PLM
Best practices for Solution Design
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Make sure the setup of the new capability matches your current maturity You don’t have to use all ‘bells and whistles’ initially Design the solution to be scalable Assume you will be adopting more capability down the road as you
mature – think 5 years out Ensure your security access setup is tailored to your company size Key users may hold multiple responsibilities Observe important segregation of duties boundaries
When to deploy new capability?
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Small businesses don’t typically have the resources to ‘add’ to these types of software projects
Be prepared - Ideally new capability is deployed before the wave of new work/contracts arrives
Make use of production downtimes / cycles
Leverage ‘Virtual’ consulting which can be provided effectively and efficiently
Summary
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Common drivers to increase Manufacturing digital maturity
Benefits of increasing digital maturity
How to adopt new Manufacturing capability
Where is your MFG Digital Maturity?
30Manufacturing Solution Capability
Man
ufac
turin
g M
atur
ity
Procurement
Product Definition
InventoryManagement
Bills of Materials
Production WIP Control
Sales Orders
Routings
BarcodingECN
MRP
MPS
APSCapacity Planning
MES
Shop Floor Labor
QMS
Integration & Automation
PLM
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Questions?
CONFIDENTIAL © Deltek, Inc. All Rights Reserved.31
Paul Whiteman
Partner – Lexell Blue
Ph: 571-214-9613
www.lexellblue.com